The Market For Now May Be Agreeing With The Fed That Inflation Is Transitory

The Market For Now May Be Agreeing With The Fed That Inflation Is Transitory

Happy Juneteenth! Tomorrow marks the newest federal holiday“”with many companies and government offices celebrating the holiday today. But given the last-minute passage of the bill to make it a federal holiday, markets will remain open. Keep in mind that today is quadruple witching day, which means it's one of four days a year (once a quarter) when contracts for stock index futures, stock index options, stock options, and single-stock futures all expire. You may want to exercise a bit more caution than normal, especially on the opening and heading into the close as the unwinding positions could lead to sudden moves. If things don't shape up, it's looking like the Dow Jones Industrial Average ($DJI) is headed for its worst week since January. The market has shown an incredible ability to rally, but the Fed caught investors a bit flat footed with its hawkish shift this week. As the week comes to a close, it seems that the stock market is continuing to adjust to the new normal of a slightly more hawkish Fed. But at the same time it also appears to be taking the Fed at its word that inflation is transitory, at least for the moment. That